Worth the investment?

The address: 51 Merrion Village, Ballsbridge, Dublin 4.

The agent: Sherry FitzGerald.

The property: two-bed ground floor apartment for €525,000.

The look: hulking 1980s-style apartment development that could almost be mistaken for an office block.

The landscape: Off the Merrion Road behind security gates, opposite St Vincent's Hospital and close to Merrion shopping centre and all the attractions of Dublin 4. Set on landscaped grounds.

The features: Two-bed 49sq m (530sq ft) apartment with entrance, livingroom and door to balcony. The kitchen has built-in wall and floor units. The bedrooms have built-in mirrored Sliderobes. Designated parking space.

What will it cost an investor to buy? At 80 per cent of the value of the property over 25 years at an investment mortgage variable rate of 3.9 per cent APR, the repayments per month would be €2,166.21. An interest-only loan for five years at 80 per cent mortgage over 25 years, at a variable rate of 3.9 per cent APR, repayments for the first five years would be €1,323 per month.

What will it cost to buy? (Own home) At 92 per cent of the property value, at a three-year fixed rate of 3.9 percent APR and over 25 years, the monthly mortgage repayment would be €2,546.79. Over 35 years the monthly repayments would be €2,135.71.

Potential: The rent for two-beds in Merrion Village is upwards of €1,500 per month but with only one bathroom and given its compact size, it might struggle to achieve that much.

Verdict: Apartments at Merrion Village don't come on the market that often. A great rental location where capital appreciation seems guaranteed.

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